Introduction to operations management

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PART ONE

Introduction

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hapter 1 introduces you to the field of operations management. It describes the nature and scope of operations management, and how operations management relates to other parts of the organization. Among the important topics it covers are the different types of operations systems, a comparison of manufacturingand service operations, a brief history of operations management, and a list of trends in business that relate to operations. After you have read this chapter, you will have a good understanding of what the operations

function of a business organization encompasses. Chapter 2 discusses operations management in a broader context, and presents the issues of competition, strategy, and productivity.After you have read Chapter 2, you will understand the importance of the operations function relative to the goals of a business organization. This chapter also describes time-based strategies, which many organizations are now adopting as they seek to become more competitive and to better serve their customers.

Introduction to operations management includes two chapters: 1 Operationsmanagement, Chapter 1 2 Competitiveness, strategy, and productivity, Chapter 2

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CHAPTER ONE

Introduction to Operations Management
CHAPTER OUTLINE

Introduction, 00 Why Study Operations Management? 00
Careers in Operations Management, 00

Establishing Priorities, 00 Ethics, 00

LEARNINGOBJECTIVES

The Historical Evolution of Operations Management, 00
The Industrial Revolution, 00 Scientific Management, 00 The Human Relations Movement, 00 Decision Models and Management Science, 00 The Influence of Japanese Manufacturers, 00

After completing this chapter, you should be able to:
1 Define the term operations 2

Functions within Business Organizations, 00
Operations, 00Finance, 00 Marketing, 00 Other Functions, 00

3

Trends in Business, 00
Recent Trends, 00 Ongoing Trends, 00
4 5 6 7

The Scope of Operations Management, 00 Differentiating Features of Operations Systems, 00
Degree of Standardization, 00 Type of Operation, 00 Production of Goods versus Service Operations, 00

The Operations Manager and the Management Process, 00 Operations Managers andDecision Making, 00
Models, 00 Quantitative Approaches, 00 Analysis of Trade-Offs, 00 A Systems Approach, 00

Reading: Agile Manufacturing, 00 Summary, 00 Key Terms, 00 Discussion and Review Questions, 00 Memo Writing Exercises, 00 Cases: Hazel, 00 Total Recall, 00 Operations Tour: Wegmans Food Markets, 00 Selected Bibliography and Further Reading, 00

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management. Identify the threemajor functional areas of organizations and describe how they interrelate. Describe the operations function and the nature of the operations manager’s job. Differentiate between design and operation of production systems. Provide a general description of the different types of operations. Compare and contrast service and manufacturing operations. Briefly describe the historical evolution ofoperations management. Describe the key aspects of operations management decision making. Identify some of the current trends in business that impact operations management.

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PART ONE INTRODUCTION

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n the late 1970s, Wal-Mart was a niche marketer, with about 200 stores, mostly in the South. At the time, Sears, JC Penney, and Kmartdominated the retail market. Over the years, Wal-Mart gained market share at the expense of the previous market leaders, and it has now become the largest and most profitable retailer in the world!

In the 1990s, the Boeing Company ran into trouble when it could not meet production deadlines. As a result, Boeing lost some orders, which had a negative impact on earnings and its stock price. Why do...
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